Inside SBTi's Revised Corporate Net Zero Standard

The Science Based Targets initiative (SBTi) has released a second draft of its revised Corporate Net-Zero Standard for public consultation. 

Informed by feedback from the first consultation and expert working groups, the update aims to strengthen scientific integrity while improving clarity, actionability and usability. 

The goal is simple: help more businesses turn science-based ambition into credible emissions cuts at pace.

Accelerating decarbonisation

The proposed standard introduces a streamlined structure that makes net zero target setting easier to understand, apply and scale across sectors and regions. 

Companies are expected to treat net zero as the “north star” by aligning near-term actions in operations and value chains with long-term climate objectives, underpinned by published transition plans. 

The framework provides an end-to-end cycle that incentivises ambition and recognises progress at the close of a target period.

“Businesses are driving global decarbonisation and will be key to achieving our climate objectives,” says David Kennedy, Chief Executive Officer at the Science Based Targets initiative.

“Taking science-based action both reduces emissions and manages transition risks, maintaining competitiveness and offering growth opportunities in a carbon-constrained world. 

“By contributing to our public consultation stakeholders can help shape the future of corporate climate action and ensure the Standard helps companies to turn ambition into action and action into impact."

Scope-specific targets to bolster integrity

To reflect the distinct challenges and levers across emissions categories, the draft keeps separate requirements for Scope 1 and Scope 2 targets and clarifies how Scope 3 should be addressed. 

"While the draft may still evolve based on feedback, I found the concept of OER particularly interesting," writes Natsuru Toda, Manager of Nature Based Solutions at Mitsubishi Corporation, on LinkedIn.

This scope-specific approach is designed to improve the integrity and actionability of corporate plans, ensuring companies prioritise the emissions sources where they can drive the greatest change across both operations and value chains.

Recognising the diversity of corporate footprints, the draft introduces science-based options that allow companies to sequence actions according to their context while remaining aligned with global climate goals. 

These include direct and indirect emissions-reduction levers. 

“With the publication of this updated draft we are taking a further step forward in making science-based climate action more inclusive, actionable and adaptable for businesses everywhere,” says Alberto Carrillo Pineda, Chief Technical Officer at the Science-Based Targets initiative.

"Already reflecting the feedback of hundreds of businesses and experts gathered in the first consultation, further input on this draft is crucial to ensuring that the finalised Corporate Net-Zero Standard is practical, credible and robust, helping businesses worldwide accelerate the net zero transition.”

Transparency as a lever for impact

While direct decarbonisation remains the priority, a new recognition mechanism will incentivise early, voluntary steps that address the impact of ongoing emissions, encouraging faster real-world progress.

Clear expectations on measuring and disclosing progress are central to the revision. 

"This new transparency (and possibly the recognition) could unlock a wave of climate finance," writes Robert (Eidmark) Höglund, CEO of Marginal Carbon AB and Co-Founder of CDR.fyi, on LinkedIn.

"For carbon removal, the draft is a setback.

"There’s still no requirement, or even signal, for companies to begin scaling durable CDR today.

"The choices made now will decide whether durable carbon removal is ready when the world finally needs it."

The standard outlines how companies should report against targets to drive accountability and continuous improvement, helping organisations stay aligned with their net zero ambition and maintain competitiveness in a carbon-constrained economy.

SBTi is also running a public consultation to help further develop the standard, making it scientifically robust, credible and workable.